Understanding EBITDA: What You Need to Know.
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Understanding EBITDA: What You Need to Know.
EBITDA stands for Earnings Before Interest, Taxes, Depreciation, and Amortization, and it's a popular metric in the start-up world. According to Buffett, relying on EBITDA can be misleading. Why? Because ignoring depreciation and interest can paint an unrealistic picture of a company's profitability. Depreciation: It's based on assets, and if ...
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